Atm Class Action Lawsuit, NYCB $1.23M ATM Fee Payout Deadline Approaching Fast New York Community Bank Customers Could Get Paid

Imagine checking your bank statement and seeing a $3 fee you didn’t expect. Then another. And another. For some New York Community Bank customers, those small ATM fees added up to hundreds of dollars over time—money they say the bank had no right to take.

Now, there’s a $1.23 million settlement on the table, and you might be entitled to a piece of it.

What This Settlement Is About

Here’s what you need to know right now:

The Lawsuit: Customers sued New York Community Bank (NYCB) claiming the bank charged unfair ATM fees and overdraft charges that violated their account agreements and state consumer protection laws.

The Accusation: The lawsuit alleges NYCB improperly charged customers fees for using out-of-network ATMs and imposed overdraft fees in situations where customers believed they shouldn’t have been charged.

The Settlement Amount: $1.23 million total, which will be divided among eligible class members after legal fees and costs.

Who’s Eligible: Current and former NYCB customers who were charged certain ATM fees or overdraft charges during the class period (specific dates vary based on your account type).

What You’ll Get: Payment amounts depend on how many people file claims and how many qualifying fees you paid. Some customers could receive anywhere from $10 to several hundred dollars.

How to Claim: You don’t have to do anything. If you’re part of the settlement class, you’ll automatically receive payment or account credit unless you opt out.

Current Status: The court is reviewing the settlement. Final approval hearing is scheduled for January 13, 2026. Objection and opt-out deadline is December 15, 2025.

Why This Case Matters to Regular Bank Customers

Banks charge billions in ATM and overdraft fees every year. For many Americans living paycheck to paycheck, a $35 overdraft fee can mean choosing between gas and groceries.

This settlement addresses claims that NYCB charged fees that customers didn’t expect or authorize—fees buried in fine print or applied in ways that seemed to contradict what customers were told when they opened their accounts.

While $1.23 million might sound like a lot, it represents potentially thousands of individual transactions where customers paid $2, $3, or $5 at a time without fully understanding why.

The Full Story: What NYCB Is Accused Of

The Allegations

The class action lawsuit claims New York Community Bank violated consumer protection laws by:

Charging unexpected ATM fees when customers used out-of-network ATMs, even when the fee disclosures were unclear or misleading
Imposing overdraft fees in situations where customers had opted out of overdraft protection or believed they had sufficient funds
Failing to properly disclose the circumstances under which these fees would apply
Breaching account agreements by charging fees that weren’t properly authorized

What the Bank Says

NYCB denies any wrongdoing. The bank agreed to settle to avoid the cost and uncertainty of continued litigation, not because it admits the allegations are true.

This is common in class action settlements. Banks often settle to move past the legal dispute while maintaining they followed all applicable laws and regulations.

Atm Class Action Lawsuit, NYCB $1.23M ATM Fee Payout Deadline Approaching Fast New York Community Bank Customers Could Get Paid

Who Qualifies for Payment?

You’re likely eligible if you:

✓ Had a checking or savings account with New York Community Bank

✓ Were charged ATM fees for using out-of-network ATMs during the class period

✓ Were charged overdraft fees that are part of the settlement claims

✓ Had an account during the relevant time period (check the official settlement website for specific dates)

You do NOT qualify if you:

✗ Never had an account with NYCB

✗ Only used in-network ATMs and were never charged the fees at issue

✗ Previously settled individual claims about these same fees

✗ Opt out of the settlement by the December 15, 2025 deadline

How Much Money Will You Actually Get?

Here’s the honest truth: nobody knows exactly yet.

How Settlement Money Gets Divided:

The $1.23 million settlement fund will be distributed as follows:

Legal fees and costs come out first (typically 25-33% of the total)
Settlement administration costs (mailing notices, processing claims, managing the website)
Remaining money gets split among all eligible class members

What Determines Your Payment:

How many qualifying fees you paid
How many other people file claims
The total number of eligible class members

Realistic Expectations:

Most class members receive between $10 and $50 in these types of settlements. If you paid dozens of fees over several years, you might receive more. If you only paid a few fees, expect a smaller check.

How to Claim Your Money (It’s Automatic)

Good news: You don’t have to file a claim.

If you’re part of the settlement class, you’ll automatically receive:

A check in the mail, OR
An account credit if you still have an active NYCB account

The settlement administrator will use NYCB’s records to identify eligible class members and calculate payments.

Important Dates:

December 15, 2025: Deadline to object or opt out
January 13, 2026: Final approval hearing
Spring 2026 (estimated): Payments issued if settlement is approved

What You Should Do:

Update your address with NYCB if you’ve moved
Watch for official notices in the mail or email
Visit the official settlement website at nycbsettlement.com for updates
Don’t ignore the payment when it arrives (checks often go uncashed because people think they’re scams)

Your Options: Do Nothing, Opt Out, or Object

Option 1: Do Nothing (Recommended for Most People)

You’ll automatically get your payment
You give up the right to sue NYCB separately about these fees
This is the easiest option and what most people choose

Option 2: Opt Out (Exclude Yourself)

You might opt out if:

You want to file your own lawsuit against NYCB
You believe you can get more money on your own
You paid substantial fees and have strong evidence

Deadline: December 15, 2025

How to opt out: Follow instructions on the settlement website

Reality check: Individual lawsuits are expensive and time-consuming. Most people don’t recover more than they would from the settlement.

Option 3: Object to the Settlement

You can tell the court why you think the settlement is unfair, the payment amounts are too low, or the legal fees are too high.

Deadline: December 15, 2025

Important: If your objection is overruled, you’ll still be bound by the settlement and receive payment.

Similar ATM and Banking Fee Class Actions

NYCB isn’t alone. Banks across the country face similar lawsuits about ATM fees and overdraft charges:

Recent Banking Class Actions:

Wells Fargo Overdraft Settlement (2024): $35 million settlement over claims the bank charged multiple overdraft fees on the same transaction.

Bank of America ATM Fees (2023): $75 million settlement addressing similar out-of-network ATM fee allegations.

Chase Overdraft Practices (2022): $50 million settlement over overdraft fee timing and authorization practices.

TD Bank Overdraft Settlement (2021): $97 million settlement involving claims about the order banks process transactions to maximize fees.

What This Trend Means

Banking regulators and consumer advocates are pushing for more transparency around fees. The Consumer Financial Protection Bureau (CFPB) has increased scrutiny of overdraft and ATM fee practices in recent years.

These settlements signal that banks must clearly disclose all fees and apply them exactly as promised in account agreements.

What Banking Regulators Say About ATM Fees

The Consumer Financial Protection Bureau (CFPB) has issued guidance that banks must:

Clearly disclose all fees before customers open accounts
Provide fee information in plain language, not legal jargon
Honor opt-out requests for overdraft protection
Process transactions fairly without manipulating the order to maximize fees

When banks fail to meet these standards, they can face regulatory action, lawsuits, or both.

For official CFPB guidance on banking fees and your rights, visit: consumerfinance.gov

How Class Action Settlements Work (Simple Explanation)

If you’re new to class actions, here’s how they work:

Step 1: Someone Files a Lawsuit

One or more customers (called “class representatives”) sue on behalf of everyone affected.

Step 2: The Court Certifies a Class

The judge decides whether the case affects enough people in a similar way to proceed as a class action.

Step 3: Settlement Negotiations

The parties negotiate a settlement, or the case goes to trial.

Step 4: Court Approval

The judge reviews the settlement to ensure it’s fair, reasonable, and adequate.

Step 5: Notice to Class Members

Everyone potentially affected gets notified and has a chance to object or opt out.

Step 6: Final Approval and Payment

If the court approves the settlement, payments go out to class members.

Expert Perspective: Why These Cases Matter

Consumer protection attorneys say cases like this serve an important purpose beyond just compensating individual customers.

“Banks collect billions in fees every year,” explains one consumer rights advocate. “When fees aren’t properly disclosed or authorized, class actions provide accountability that individual lawsuits can’t achieve. Most people won’t sue over a $3 ATM fee, but when thousands of people are affected, a class action makes it worth pursuing.”

Banking industry representatives counter that fees are necessary to maintain ATM networks and prevent account overdrafts. They argue that disclosures are clear and customers agree to fee schedules when opening accounts.

The truth likely falls somewhere in between. Fee structures can be complicated, and even careful customers sometimes miss important details in lengthy account agreements.

What to Watch Out For: Settlement Scams

Unfortunately, scammers often target people involved in class action settlements. Here’s how to protect yourself:

Red Flags:

❌ Anyone asking you to pay a fee to claim your settlement money

❌ Requests for your Social Security number or bank account details via email

❌ Phone calls demanding immediate action or personal information

❌ Emails with suspicious links or attachments

How to Stay Safe:

✅ Only visit the official settlement website: nycbsettlement.com

✅ Verify information by calling the settlement administrator directly

✅ Never pay money to receive settlement funds

✅ Don’t click links in unexpected emails—type the website address directly into your browser

Frequently Asked Questions

How do I know if I’m part of the settlement class?

You’ll receive a notice in the mail or email if NYCB’s records show you’re eligible. You can also check the settlement website or call the settlement administrator.

Do I have to file a claim to get money?

No. This settlement uses an automatic payment system. If you’re eligible, you’ll receive payment without filing a claim.

When will I receive my payment?

If the court approves the settlement at the January 13, 2026 hearing, payments should be issued within 60-90 days after that, likely in spring 2026.

What if I’ve moved since I closed my NYCB account?

Update your address with NYCB or the settlement administrator as soon as possible to ensure you receive your payment.

Can I get more money if I file my own lawsuit?

Possibly, but individual lawsuits are expensive and risky. Most attorneys won’t take cases involving small amounts unless you have very strong evidence and substantial damages.

What happens to unclaimed settlement money?

If checks go uncashed or can’t be delivered, the remaining funds typically go to a consumer protection organization or are distributed to other class members.

Will this affect my credit or my relationship with NYCB?

No. Participating in the settlement (or opting out) doesn’t affect your credit score or your ability to maintain accounts with NYCB.

Are settlement payments taxable?

Generally, no. Settlements for refunds of money wrongly taken aren’t considered taxable income, but consult a tax professional about your specific situation.

What if I closed my account years ago?

You’re still eligible if you were charged the relevant fees during the class period. The settlement covers former customers as well as current ones.

How do I object to the settlement?

Follow the objection instructions on the settlement website. You must submit a written objection explaining why you believe the settlement is unfair by December 15, 2025.

The Bigger Picture: Your Banking Rights

This settlement highlights important consumer rights that all bank customers should know:

Your Right to Clear Disclosures

Banks must tell you about all fees in plain language before you open an account. If fee structures change, they must notify you.

Your Right to Opt Out of Overdraft Protection

Federal law gives you the right to opt out of overdraft coverage for ATM and debit card transactions. Banks can’t force you to pay overdraft fees on these transactions if you decline the service.

Your Right to Dispute Fees

If you see a fee you don’t understand, you have the right to ask your bank to explain it and, if appropriate, waive it.

Your Right to File Complaints

If your bank won’t resolve a fee dispute, you can file a complaint with:

The Consumer Financial Protection Bureau: consumerfinance.gov/complaint
Your state attorney general’s consumer protection division
The Federal Deposit Insurance Corporation (FDIC): fdic.gov/resources/consumers

Your Right to Switch Banks

If you’re unhappy with your bank’s fee practices, you can close your account and move to a bank with lower or no fees. Many credit unions and online banks offer fee-free checking and ATM access.

Next Steps: What You Should Do Now

If you think you’re eligible:

Visit the official settlement website at nycbsettlement.com
Read the detailed notice and FAQ
Update your contact information with NYCB if you’ve moved
Mark your calendar for important deadlines
Decide whether to accept the settlement, opt out, or object

If you’re not sure if you’re eligible:

Look through old bank statements for NYCB ATM or overdraft fees
Call the settlement administrator (contact info on the settlement website)
Check your email for official settlement notices

If you want to learn more about your consumer rights:

Visit the Consumer Financial Protection Bureau: consumerfinance.gov
Read about class action lawsuits and consumer protection laws
Check if there are other class action settlements you might be eligible for

The Bottom Line

The $1.23 million New York Community Bank ATM fees class action settlement offers eligible customers a chance to recover money from fees they believe were unfairly charged.

While individual payments won’t be huge, the settlement sends a message that banks must be transparent about fees and honor their agreements with customers.

You don’t need to do anything special to participate—just make sure NYCB has your current address and wait for your payment after the court grants final approval.

If you believe you were charged unfair ATM or overdraft fees, this settlement might put some money back in your pocket. And in a world where every dollar counts, that matters.

Key Takeaways:

✓ You don’t have to file a claim—payments are automatic

✓ Update your address to make sure you receive your check

✓ Payment amounts depend on how many fees you paid and how many people participate

✓ The deadline to object or opt out is December 15, 2025

✓ Final court approval happens January 13, 2026

✓ Payments likely to be issued in spring 2026

For the most current information, always check the official settlement website at nycbsettlement.com.

Disclaimer: This article provides general information about the New York Community Bank ATM fees class action settlement and is not legal advice. For specific questions about your situation, consult with a qualified attorney. Settlement terms and dates are subject to court approval and may change.

About the Author

Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
Her writing blends real legal insight with plain-English explanations, helping readers stay informed and legally aware.
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